Matador Resources Company (MTDR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,209,320 | 1,759,270 | 793,076 | -521,499 | 235,480 |
| Total assets | US$ in thousands | 7,727,000 | 5,554,500 | 4,262,150 | 3,687,280 | 4,069,680 |
| Operating ROA | 15.65% | 31.67% | 18.61% | -14.14% | 5.79% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,209,320K ÷ $7,727,000K
= 15.65%
Matador Resources Co's operating return on assets (operating ROA) has fluctuated over the past five years. The company experienced a substantial decrease in operating ROA from 26.10% in 2022 to 12.15% in 2023. This significant decline suggests a possible decrease in the company's operational efficiency and/or profitability in utilizing its assets to generate operating income.
In comparison to the previous years, 2023's operating ROA of 12.15% is lower than the 5-year average operating ROA of 11.87%. It is also notably lower than the peaks seen in 2022 and 2021. This downward trend may indicate potential challenges that Matador Resources Co faced in optimizing its asset utilization during the most recent fiscal year.
It is essential for stakeholders to closely monitor Matador Resources Co's operating ROA and assess the factors contributing to the fluctuation in performance. Sustainable improvement in operating ROA is crucial for the company to enhance its operational effectiveness and generate higher returns from its assets.
Peer comparison
Dec 31, 2023